CML urges government to explore low cost home-ownership

The Council of Mortgage Lenders says it strongly urges the government to explore the full potential of low cost home-ownership.

Following a report out by a government task force looking at low cost home-ownernership, it says that as well as allowing more people to get on the property ladder, it would also help plug the affordability gap for first-time buyers.

An improved shared ownership scheme, together with expanded funding, could potentially help many first-time buyers who cannot afford to enter the housing market because of the high level of house pries.

The task force recommends improvements to shared ownership, and the CML looks forward toworking on them with the government and the Housing Corporation.

Michael Coogan, director-general of the CML, says: “The government should sit up and take notice of this report. It represents a real opportunity to take an imaginative approach to the problems currently facing first-time buyers.

“In particular, low cost home-ownership has the potential not only to help more people on to the property ladder but also to offer new alternatives for borrowers who get into difficulty with their mortgage.

“The CML has been working for many years for an improved safety net for vulnerable borrowers. Low cost home-ownership could be an important strand of this.

“Today&#39s report should be matched by Government imagination, commitment and funding to deliver the dream of home-ownership to everyone that aspires to it.”